Stocks rebounded from a three-day slump on a choppy day for Asian markets ahead of key policy meetings in the United States and Japan next week.
The Philippine Stock Exchange index, the 30-company benchmark, jumped 162 points, or 2.2 percent, to close at 7,708.42 Wednesday. The bellwether was also up 10.9 percent since the start of the year.
The heavier index, representing all shares, fell 49 points, or 1.1 percent, to settle at 4,614, on a value turnover of P8 billion. Advancers outnumbered losers, 110 to 75, while 54 issues were unchanged.
Seventeen of the 20 most active stocks ended in the green, led by conglomerate Aboitiz Equity Ventures Inc. of the Aboitiz family which climbed 4.6 percent to P78 and JG Summit Holdings Inc. of tycoon John Gokongwei which advanced 4.5 percent to P77.40.
Bank of the Philippine Islands, the third fourth largest lender, rose 4.2 percent to P107.90, while BDO Unibank Inc., the largest bank, added 3.7 percent to close at P113.
Meanwhile, traders worldwide are focusing on the central bank gatherings, hoping they will clear up some uncertainty about monetary policy in two of the world’s biggest economies.
Equity markets have been hit by volatility the past week after two Federal Reserve officials suggested US borrowing rates could rise in September, before another colleague on Monday urged caution ahead of any tightening.
The lack of clear guidance has kept investors on edge, leading to selling.
“With escalating uncertainty surrounding the US and Japan’s monetary policies, there’s a deep-rooted yearning to cut down on any long position in stocks,” Mitsuo Shimizu, deputy general manager at Japan Asia Securities Group, told Bloomberg News.
In Japan, where investors have been left disappointed by a series of weak central bank remedies or lack of action, reports that officials are considering cutting interest rates further into negative territory hammered financial firms.
Tokyo’s Nikkei ended down 1.2 percent, with exporters also weighed by a pick-up in the yen as uncertainty over the impact of a possible new rate cut sent traders into safe havens.
“Minus interest rates are supposed to make the yen weaker, but if the move triggers concerns over the potential negative impact on the overall economy, the yen could strengthen again,” Naoki Fujiwara, chief fund manager with Shinkin Asset Management, said.
Other markets swung in an out of positive territory. Sydney reversed early losses to end 0.2 percent higher, while there were also gains in Hong Kong, which added 0.5 percent in the afternoon following a three-day sell-off. Singapore and Wellington retreated. With AFP, Bloomberg
